In the U.S., the income generated by
A) sole proprietorships and partnerships is never taxed.
B) corporations is taxed using a graduated scale.
C) sole proprietorships, partnerships, and corporations is taxed using a flat rate.
D) sole proprietorships and partnerships is taxed to the individual stockholders at their personal income tax rates.
E) both a and b are correct.

Question

Quizplus · Accepted Answer

Corporations in the U.S. are taxed using a graduated scale, meaning the tax rate increases with the level of income. Sole proprietorships and partnerships are taxed at the individual owner's personal income tax rates, not at a flat rate or to stockholders.

In the U.S., the Income Generated by